Fannie Mae is a Government Sponsored Enterprise (GSE) offering a variety of loan options to help low-income and first-time homebuyers break into the housing market. One such program is the HomePath ReadyBuyer Program, which is available to first-time homebuyers with the intention of both educating them about the mortgage application process as well as offering them a favorable loan package. With HomePath ReadyBuyer, borrowers can pay as low as 3% down and get up to 3% back on your home’s purchase price. This program can also open the door to participation in other Fannie Mae programs, such as HomeReady Mortgage.
There are a few criteria that you must meet in order to qualify for the HomePath ReadyBuyer program:
- Be a First-Time Homebuyer
- This program is intended for first-time homebuyers, both as an educational experience and an affordable one. Fannie Mae encourages first-time buyers to use this program as part of their mission to support “safe and sustainable” homeownership.
- Residency Requirements
- The home that you’re purchasing must be your primary residence within 60 days of closing on the property. You cannot use this program for assistance with financing investment or rental properties.
- Fannie Mae Ownership
- The home you’re purchasing must also be owned by Fannie Mae. Although Fannie Mae (along with Freddie Mac) owns 45.9% of mortgages in the US, you should still be sure before considering participation in the HomePath ReadyBuyer program. Check to see if your home is owned by Fannie Mae here.
One of the key parts of the HomePath ReadyBuyer program is the HomePath ReadyBuyer course. This is a 4-6 hour online class educates first-time home buyers on the mortgage application process. It covers a variety of common problems a first-time homebuyer will face, such as failing to qualify for pre-approval or struggling with a low credit score. It will also answer questions about how to afford a new home and whether or not this is the right time to be looking to purchase a home. Although the course costs 75$, you will be reimbursed after closing on your new home. Additionally, the completion of this course can qualify you for participation in Fannie Mae’s HomeReady Mortgage program.
The HomePath ReadyBuyer program requires that you work with a real estate agent in order to purchase a HomePath property. The real estate agent will work with Fannie Mae closely throughout your mortgage application process. Additionally, Fannie Mae plays a very involved role in your home buying process, ensuring that they have a large degree of control over the quality of your experience.